Teleflex to acquire all assets of Axiom Technology Partners

Teleflex IncorporatedMay 2 2012

Teleflex Incorporated (NYSE: TFX), a leading global provider of medical devices for critical care and surgery, today announced it has entered into a definitive agreement to acquire substantially all of the assets of Axiom Technology Partners, LLC, which makes the EFx family of laparoscopic fascial closure system products. This acquisition is expected to broaden our general surgery product line and provide access to new sales channels. The EFx product portfolio includes both FDA-cleared and pipeline products designed for the safe and simple closure of abdominal trocar defects through which access ports and instruments were used during laparoscopic surgeries.    

Post-surgical herniation is a common complication in patients at sites in which larger instruments were inserted during surgery. Published guidelines recommend that all midline umbilical port sites and port sites greater than 10 millimeters be closed to avoid herniation. The EFx portfolio is applicable to all surgical laparoscopic port sites that are 10 millimeters or larger. There are approximately 5 million laparoscopic procedures performed globally each year with roughly half of those conducted in the United States. Laparoscopic procedures performed with 10 millimeter endoscopes or larger account for approximately 70% of all procedures.

Teleflex currently has a strong presence in laparoscopic cholecystectomy (gall bladder removal) and robotic prostatectomy. The EFx adds a compelling new product to those procedures and opens new surgical procedure markets to Teleflex, including bariatric surgery, bowel resection, hernia and hysterectomy. The current total global closure market for endoscopic fascial closure products is estimated to be approximately $200 million.

The U.S. Food and Drug Administration (FDA) granted EFx 510(k) clearance in December 2010 for standard and bariatric length devices. The product will be marketed as the Weck EFx^™ Endo Fascial Closure System and is being prepared for CE Mark review in Europe and Canada for these indications. More than 750 clinical cases have been performed with the device in the U.S.

Under the terms of the definitive agreement, Teleflex will purchase substantially all of the assets of Axiom Technology Partners, LLC, a portfolio company of Option3, LLC, a privately held medical device incubator focused on the minimally invasive surgery and endovascular markets. The transaction is subject to customary closing conditions and is expected to close in May 2012.

"EFx offers superior clinical impact and is easier to use than currently available laparoscopic fascial closure products. It satisfies the post-surgical need to close laparoscopic port sites and is both safe and reliable," said Jay White, Vice President and General Manager, Teleflex Surgical.

Added White, "With this acquisition, we will enhance our focus in OB/GYN and other advanced laparoscopic procedures while strengthening our existing access portfolio where we have several new products planned to launch in the next few months. The EFx system's unique value proposition will allow us to drive adoption in the fascial closure market which is currently less than 25% penetrated."